Strong AUD Places Burden on Parts of Australia's Economy: PM -Shanghai Metals Market

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Strong AUD Places Burden on Parts of Australia's Economy: PM

Data Analysis 02:20:01PM Oct 08, 2010 Source:SMM

CANBERRA, Oct. 8 (Xinhua) -- A strong Australian dollar exchange rate can be a burden on parts of the local economy, Prime Minister Julia Gillard said on Friday.

"As I think we all know, from common sense and the understanding of the Australian economy, a high dollar is good for some parts of the economy and places burdens on others," Gillard told the Australia Associated Press in Newcastle.

The Australian dollar hit a high of 99.18 U.S. cents overnight on Thursday - its best level since the currency was floated in December 1983.

The dollar has since pulled back from its overnight high, and was buying 98.05 U.S. cents at 11:50 a.m. AEDT on Friday.

Gillard indicated the a strong Australian dollar generally means the cost of imported goods fall, which is good for consumers.

However, it can also mean the cost of exports rise, hurting farmers and other commodities sellers.

"Different parts of the country are growing at different rates - that's in part connected to the value of the Australian dollar," Gillard said.
 

Key Words:  exchange rate  global economy 

Strong AUD Places Burden on Parts of Australia's Economy: PM

Data Analysis 02:20:01PM Oct 08, 2010 Source:SMM

CANBERRA, Oct. 8 (Xinhua) -- A strong Australian dollar exchange rate can be a burden on parts of the local economy, Prime Minister Julia Gillard said on Friday.

"As I think we all know, from common sense and the understanding of the Australian economy, a high dollar is good for some parts of the economy and places burdens on others," Gillard told the Australia Associated Press in Newcastle.

The Australian dollar hit a high of 99.18 U.S. cents overnight on Thursday - its best level since the currency was floated in December 1983.

The dollar has since pulled back from its overnight high, and was buying 98.05 U.S. cents at 11:50 a.m. AEDT on Friday.

Gillard indicated the a strong Australian dollar generally means the cost of imported goods fall, which is good for consumers.

However, it can also mean the cost of exports rise, hurting farmers and other commodities sellers.

"Different parts of the country are growing at different rates - that's in part connected to the value of the Australian dollar," Gillard said.
 

Key Words:  exchange rate  global economy